[Added 3-15-2022 by Ord.
No. 2022-2]
For purposes of this Chapter, the following definitions shall
apply:
Means all parts of the plant Cannabis sativa L., whether
growing or not, the seeds thereof, and every compound, manufacture,
salt, derivative, mixture, or preparation of the plant or its seeds,
except those containing resin extracted from the plant, which are
cultivated and, when applicable, manufactured in accordance with P.L.
2016, c. 16 for use in cannabis products as set forth in this Act,
but shall not include the weight of any other ingredient combined
with cannabis to prepare topical or oral administrations, food, drink,
or other products. "Cannabis" does not include: medical cannabis dispensed
to registered qualifying patients pursuant to the "Jake Honig Compassionate
Use Medical Cannabis Act," P.L. 2009, c. 307 (C. 24:61-1 et al.) and
P.L. 2015, c. 158 (C. 18A:40-12.22 et al.); marijuana as defined in
N.J.S. 2C:35-2 and applied to any offense set forth in chapters 35,
35A, and 36 of Title 2C of the New Jersey Statutes, or P.L. 2001,
c. 114 (C. 2C:35B-1 et seq.), or marihuana as defined in section 2
of P.L. 1970, c. 226 (C. 24:21-2) and applied to any offense set forth
in the "New Jersey Controlled Dangerous Substances Act," P.L. 1970,
c. 226 (C. 24:21-1 et al.); or hemp or a hemp product cultivated,
handled, processed, transported, or sold pursuant to the "New Jersey
Hemp Farming Act," P.L. 2019, c. 238 (C. 4:28-6 et al.).
Means any licensed person or entity that grows, cultivates,
or produces cannabis in this State, and sells, and may transport,
this cannabis to other cannabis cultivators, or usable cannabis to
cannabis manufacturers, cannabis wholesalers, or cannabis retailers,
but not to consumers.
Means any licensed person or entity that provides courier
services for consumer purchases of cannabis items and related supplies
fulfilled by a cannabis retailer in order to make deliveries of the
cannabis items and related supplies to that consumer, and which services
include the ability of a consumer to purchase the cannabis items directly
through the cannabis delivery service, which after presenting the
purchase order to the cannabis retailer for fulfillment, is delivered
to that consumer.
Means any licensed person or entity that transports cannabis
in bulk intrastate from one licensed cannabis cultivator to another
licensed cannabis cultivator, or transports cannabis items in bulk
intrastate from any one class of licensed cannabis establishment to
another class of licensed cannabis establishment, and may engage in
the temporary storage of cannabis or cannabis items as necessary to
carry out transportation activities.
Means a cannabis cultivator, a cannabis manufacturer, a cannabis
wholesaler, or a cannabis retailer.
Means any licensed person or entity that processes cannabis
items in this State by purchasing or otherwise obtaining usable cannabis,
manufacturing, preparing, and packaging cannabis items, and selling,
and optionally transporting, these items to other cannabis manufacturers,
cannabis wholesalers, or cannabis retailers, but not to consumers.
Means any licensed person or entity that purchases or otherwise
obtains usable cannabis from cannabis cultivators and cannabis items
from cannabis manufacturers or cannabis wholesalers, and sells these
to consumers from a retail store, and may use a cannabis delivery
service or a certified cannabis handler for the off-premises delivery
of cannabis items and related supplies to consumers. A cannabis retailer
shall also accept consumer purchases to be fulfilled from its retail
store that are presented by a cannabis delivery service which will
be delivered by the cannabis deliver service to that consumer.
Means any licensed person or entity that purchases or otherwise
obtains, stores, sells or otherwise transfers, and may transport,
cannabis items for the purpose of resale or other transfer to either
another cannabis wholesaler or to a cannabis retailer, but not to
consumers.
[Added 3-15-2022 by Ord.
No. 2022-2]
a.Â
License. In addition to any license issued by the State, cannabis
establishments permitted pursuant to this chapter and cannabis distributors
within the Borough of South Toms River, shall be required to obtain
from the Borough of South Toms River Building Department an annual
license evidencing compliance with the requirements of this chapter.
Under no circumstances shall a local license issued by the Building
Department be effective until or unless the State has issued the requisite
permits or licenses to operate such a facility. The local license
shall be valid for a one-year period from the date of issuance and
shall be renewable, subject to any restrictions or regulations adopted
since the previous local license was issued or renewed. In the event
of any violation of this chapter, the Building Department may, upon
notice to and a hearing provided to the licensee, revoke the license.
Transfer of ownership of any local license or change of location or
modification of any local license shall be subject to the approval
of the Building Department. There shall be a non-refundable application
fee for such license in the amount of $10,000 for all Class 1, 2,
3, 4 and 5 cannabis licenses. There shall be a non-refundable application
fee of $5,000 for Class 6 cannabis licenses. The annual license fee
shall be in an amount of $5,000 for Class 1, 2, 3, 4 and 5 cannabis
licenses. The annual license fee shall be in an amount of $2,500 for
all Classes 6 cannabis licenses.
b.Â
Number of licenses issued. The Borough of South Toms River shall
limit the number of aggregate licenses of all Class licenses (1-6)
issued in each of the Marine Recreational-Residential Zone, the Mixed-Use
Zone, Special Economic Development Zone and the Neighborhood Commercial
Zone to three licenses for each zone.
[Added 3-15-2022 by Ord.
No. 2022-2]
Within 30 days of the passage of this Chapter, the Borough will
issue a request for proposals (RFP) for applicants seeking licensing
pre-approval to submit license applications to the State of New Jersey.
The scoring shall be on a scale of zero to 100 as set forth in the
criteria established by the Borough. The highest scoring applicants
shall be pre-approved for licensure and may apply to the State of
New Jersey for a license. Any applicant that receives scoring less
than 80 points out of 100 shall not be approved. After the above RFP
process is complete should a license become inactive or available,
any applicant may apply for pre-approval from the Borough as provided
for herein. However, such application shall be considered based upon
the date of submission. The fee for review of the above application
shall be $500. Licensing shall be issued by the Borough Clerk pursuant
to the provisions of this Chapter.
[Added 3-15-2022 by Ord.
No. 2022-2]
Cannabis establishments and cannabis distributors shall be subject
to the following specifications and standards, which shall constitute
regulations applicable to a permitted use, and shall not be construed
as conditions applicable to a conditional use:
a.Â
Licenses. Prior to the operation of any cannabis establishment, a
permit or license must be obtained from the State of New Jersey and
from the Borough of South Toms River for the applicable type(s) of
cannabis establishment. No cannabis establishment shall be permitted
to operate without State and municipal permits or licenses.
b.Â
Compliance with Licenses. Permitted uses shall, at all times, comply
with the terms and conditions of the licensee's cannabis establishment
permits and licenses issued by the State of New Jersey and the Borough
of South Toms River.
c.Â
Hours of Operation. The hours of public operation for all Class 1
(Cannabis Cultivator), 2 (Cannabis Manufacturer), 3 (Cannabis Wholesaler),
and 4 (Cannabis Distributor) Licensed cannabis businesses shall be
limited to 7:00 a.m. through 10:00 p.m. daily. The hours of public
operation for all Class 5 Licenses (Cannabis Retailer) shall be limited
to 8:00 a.m. through 10:00 p.m. daily.
d.Â
Odor. Cannabis establishments shall have equipment to mitigate odor
sufficient odor absorbing ventilation and exhaust systems such as
equipment with carbon filters sufficient in type and capacity to mitigate
cannabis odors emanating from the interior of the premises. Odor from
cannabis establishments shall be monitored on an annual basis at the
discretion of the Borough by a licensed, qualified contractor chosen
by the Borough at a cost that shall be paid for by the licensed business.
e.Â
Noise. Outside generators and other mechanical equipment used for
any kind of power supply, cooling, or ventilation shall be enclosed
and have appropriate baffles, mufflers, and/or other noise reduction
systems to mitigate noise pollution.
f.Â
Security. All cannabis establishments shall be secured in accordance
with State of New Jersey statutes and regulations; shall have a round-the-clock
video surveillance system, 365 days per year; and shall have trained
security personnel onsite at all times during operating hours. Footage
must be maintained for the duration required under State law. All
licensed facilities must provide the Borough's Police Department
with access to security footage immediately upon request by the Department.
g.Â
Dimensional, density and other bulk restrictions; other provisions
and requirements. Except as specifically modified herein, and to the
extent applicable, the dimensional, density and other bulk restrictions
and requirements of the Marine Recreational-Residential Zone, the
Mixed-Use Zone, Special Economic Development Zone and the Neighborhood
Commercial Zone shall apply.
h.Â
Outdoor cultivation or greenhouses shall be prohibited. The cultivation
of cannabis shall only be permitted within a fully enclosed building.
i.Â
Drive-through facilities are prohibited.
j.Â
On-site consumption prohibited. No cannabis or cannabis product shall
be smoked, eaten or otherwise consumed on the premises of any cannabis
establishment, unless permitted pursuant to State statute or regulation.
k.Â
Age Restriction. No person under the age of 21 years may be permitted
within any cannabis establishment. Any person seeking entry into a
cannabis establishment shall be required to present proof of age to
a security guard before gaining entry.
[Added 3-15-2022 by Ord.
No. 2022-2]
a.Â
There is hereby established a local transfer tax imposed on sales
that occur within the Borough of South Toms River between a cannabis
business that holds a cultivator, manufacturer, retailer, or wholesaler
license or any combination thereof, at a rate of 2% of the receipts
from each sale by a cannabis cultivator; 2% of the receipts from each
sale by a cannabis manufacturer; 1% of the receipts from each sale
by a cannabis wholesaler; and an equivalent user tax on non-sale transactions
between cannabis businesses operated by the same license holder payable
to the Borough of South Toms River.
b.Â
Every cannabis establishment required to collect a transfer tax imposed
by ordinance pursuant to this section shall be personally liable for
such transfer tax or user tax imposed, collected, or required to be
collected under this section. Any cannabis establishment shall have
the same right with respect to collecting the transfer tax or user
tax from another cannabis establishment as if the transfer tax was
a part of the sale and payable at the same time, or with respect to
non-payment of the transfer tax or user tax by the cannabis establishment
or consumer, as if the transfer tax was a part of the purchase price
of the cannabis or cannabis item, or equivalent value of the transfer
of the cannabis or cannabis item, and payable at the same time; provided,
however, that the chief financial officer of the Borough shall be
joined as a party in any action or proceeding brought to collect the
cannabis sales or user tax.
c.Â
All revenues collected from a transfer tax imposed by ordinance pursuant
to this section shall be remitted to the Chief Financial Officer in
the manner prescribed herein. The chief financial officer shall collect
and administer any transfer tax imposed by ordinance pursuant to this
chapter. The Borough may enforce the payment of any delinquent taxes
imposed by ordinance pursuant to this section in the same manner as
provided for municipal real property taxes. In the event that the
transfer tax imposed by ordinance pursuant to this section is not
paid as and when due by a cannabis establishment, the unpaid balance,
and any interest accruing thereon, shall be a lien on the parcel of
real property comprising the cannabis establishment's premises
in the same manner as all other unpaid municipal taxes, fees, or other
charges. The lien shall be superior and paramount to the interest
in the parcel of any owner, lessee, tenant, mortgagee, or other person,
except the lien of municipal taxes, and shall be on a parity with
and deemed equal to the municipal lien on the parcel for unpaid property
taxes due and owing in the same year. The Borough shall file in the
office of its tax collector a statement showing the amount and due
date of the unpaid balance and identifying the lot and block number
of the parcel of real property that comprises the delinquent cannabis
establishment's premises. The lien shall be enforced as a municipal
lien in the same manner as all other municipal liens are enforced.
d.Â
The Chief Financial Officer is charged with the administration and
enforcement of the local transfer tax provisions of this chapter,
and is empowered to prescribe, adopt, promulgate and enforce rules
and regulations relating to any matter pertaining to the administration
and enforcement of this Chapter, including provisions for the reexamination
and corrections of declarations and returns, and of payments alleged
or found to be incorrect, or as to which an overpayment is claimed
or found to have occurred, and to prescribe forms necessary for the
administration of this Chapter. Should a cannabis establishment fail
or refuse to provide adequate information to the Chief Financial Officer
to determine the amount of tax due, the Chief Financial Officer may
use information provided to the Chief Financial Officer from other
sources (i.e., the Commission or Department of Treasury) to determine
the amount of tax liability.
e.Â
Taxpayers liable for the transfer tax are required to keep such records
as will enable the filing of true and accurate returns or the tax
and such records shall be preserved for a period of not less than
three years from the filing date or due date, whichever is later,
in order to enable the chief financial officer or any agent designated
by him to verify the correctness of the declarations or returns filed.
If records are not available in the Borough to support the returns
which were filed or which should have been filed, the taxpayer will
be required to make them available to the Chief Financial Officer
either by producing them at a location in the municipality or by paying
for the expenses incurred by the Chief Financial Officer or his agent
in traveling to the place where the records are regularly kept.
f.Â
All cannabis establishments operating in the municipality are required
to file a copy of their New Jersey transfer tax return with the Chief
Financial Officer to report their sales during each calendar quarter
and the amount of tax in accordance with the provisions of this Chapter.
Returns shall be filed and payments of tax imposed for the preceding
calendar quarter shall be made on or before the last day of April,
July, October, and January, respectively. A taxpayer who has overpaid
the transfer tax, or who believes it is not liable for the tax, may
file a written request on an amended tax return with the Chief Financial
Officer for a refund or a credit of the tax. For amounts paid as a
result of a notice asserting or informing a taxpayer of an underpayment,
a written request for a refund shall be filed with the chief financial
officer within two years of the date of the payment.
g.Â
The chief financial officer may initiate an audit by means of an
audit notice. If, as a result of an examination conducted by the Chief
Financial Officer, a return has not been filed by a taxpayer or a
return is found to be incorrect and transfer taxes are owed, the Chief
Financial Officer is authorized to assess and collect any tax due.
If no return has been filed and tax is found to be due, the tax actually
due may be assessed and collected with or without the formality of
obtaining a return from the taxpayer. Deficiency assessments (i.e.,
where a taxpayer has filed a return but is found to owe additional
tax) shall include taxes for up to three years to the date when the
deficiency is assessed. Where no return was filed, there shall be
no limit to the period of assessment.
h.Â
Upon proposing an assessment, the chief financial officer shall send
the taxpayer an interim notice by certified mail, return receipt requested,
which advises the taxpayer of additional taxes that are due. Should
the taxpayer wish to dispute the assessment administratively by requesting
a hearing with the Chief Financial Officer, it must do so within 30
days of the date of such interim notice. If, after the Chief Financial
Officer sends an interim notice, a taxpayer fails to timely request
a hearing with the Chief Financial Officer or requests a hearing and
after conducting a hearing, the Chief Financial Officer determines
that the taxes are due, the Chief Financial Officer shall send the
taxpayer by certified mail, return receipt requested, a final notice.
Should the taxpayer wish to dispute the assessment set forth in the
final notice, he or she must initiate an appeal in the New Jersey
Tax Court within 90 days after the mailing of any final notice regarding
a decision, order, finding, assessment, or action hereunder.
i.Â
Any person who receives an interim notice from the chief financial
officer may within 30 days after the date of an interim notice, request
a hearing with the Chief Financial Officer. Any person who fails to
request a Chief Financial Officer's hearing in a timely manner
waives the right to administratively contest any element of the assessment.
The Chief Financial Officer shall accept payments of disputed tax
amounts under protest pending appeals; however, any request for refund
of such monies must be filed in accordance with this section.
j.Â
Any aggrieved taxpayer may, within 90 days after the mailing of any
final notice regarding a decision, order, finding, assessment, or
action hereunder, or publication of any rule, regulation or policy
of the Chief Financial Officer, appeal to the Tax Court pursuant to
the jurisdiction granted by N.J.S.A. 2B:13-2a(3) to review actions
or regulations of municipal officials by filing a complaint in accordance
with the New Jersey Court Rule 8:3-1. The appeal provided by this
section shall be the exclusive remedy available to any taxpayer for
review of a final decision of the Chief Financial Officer in respect
to a determination of liability for the tax imposed by this Chapter.
[Added 3-15-2022 by Ord.
No. 2022-2]
a.Â
Any licensee who shall violate or fail to comply with the provisions
of this Chapter shall, upon conviction, have his, her or its license
subject to a fine of $2,500 for the first offense and $3,500 for any
subsequent offense as well as such penalties as may otherwise be provided
by law. Any person who shall violate or fail to comply with the provisions
of this Chapter shall, upon conviction, be subject to a minimum fine
of $250 or a maximum of $2,000 or by imprisonment for a term not exceeding
90 days or by a period of community service not exceeding 90 days
as well as such penalties as may otherwise be provided by law.
b.Â
In addition to the penalties set forth in this chapter, cannabis
licensees shall further be subject to a ten-day license suspension.
Each day that a violation occurs shall be a separate violation.
